Renishaw plc

Trading update

27 October 2022

Renishaw plc, the global provider of manufacturing technologies, analytical instruments and medical devices, publishes this trading update for the three months ended 30 September 2022. It contains unaudited information that covers the first quarter of the financial year and the period since.

Trading activity

Overall Group performance was in line with our expectations for the first quarter of the year.

Revenue was £179.9m, compared to £157.8m for the corresponding period last year, with revenue growth in all regions. This includes a £4.0m currency benefit at constant exchange rates, net of hedging.

In our Manufacturing technologies business, revenue amounted to £172.8m, compared to £152.3m last year, with strong growth in our core industrial markets. In our Analytical instruments and medical devices business, revenue was £7.1m, compared with £5.5m last year.

Adjusted profit before tax for the first quarter amounted to £40.0m (FY2022: £41.7m) and is comparable with our profitability in the final quarter of the previous financial year. The current year includes a net £1.0m gain relating to currency. Statutory profit before tax amounted to £38.6m (FY2022: £39.3m).

Financial position

The Group balance sheet remains strong with net cash and bank deposit balances of £258.6m at 30 September 2022 (30 June 2022: £253.2m).

Outlook

We have made a positive start to the current year and our order book remains strong. We have, as recently reported, seen a weakening in order intake from the semiconductor and electronics sectors, and general market sentiment is becoming more cautious. In light of this, we are managing costs carefully and focusing on productivity.

Overall, we're confident in our strategy and the investments we're making in people and infrastructure to deliver sustainable, long-term growth, and we look forward to the year ahead.

The results for the half year ending 31 December 2022 will be released on 2 February 2023.

^a Results relating to sales of additive manufacturing machines to medical and dental customers are no longer recognised in the Analytical instruments and medical devices operating segment. Comparative figures have been reclassified accordingly, with £3.8m reclassified from Analytical instruments and medical devices to Manufacturing technologies in the 3 months to 30 September 2021.

^b The adjustment to statutory profit relates to the accounting treatment of certain forward currency contracts used as hedging instruments which do not qualify for hedge accounting as they do not meet the hedge effectiveness criteria set out in the International Accounting Standard IFRS 9 'Financial Instruments'. The Board deems that the adjusted profit before tax better reflects the underlying performance of the Group. The following table reconciles statutory profit before tax to adjusted profit before tax: